High Costs of Fresh Produce: GST Removal Won’t Address Inequities for Māori and Low-Income Communities
A recent statement by the Health Coalition Aotearoa (HCA) argues that removing the goods and services tax (GST) from fresh and frozen fruit and vegetables would not be an effective solution to the exorbitant prices of these essential goods, and it would not substantially benefit Māori and low-income communities.
The HCA highlights the fact that for low-income families, the rising costs of fresh produce have made it increasingly unaffordable. Conversely, those on middle to high incomes are more likely to continue purchasing these items without significant financial strain.
Professor Boyd Swinburn, a prominent member of the HCA, suggests that if the government is willing to allocate half a billion dollars annually, it should invest in policies that will alleviate the financial burden faced by struggling families and result in more affordable and healthier diets.
Dr. Lisa Te Morenga, co-chair of the HCA, emphasizes that removing GST would only have a marginal impact on the ability of the lowest-income families, particularly those from the Māori community, to afford fruits and vegetables. Māori families are disproportionally represented within the poorest segments of society and have limited resources to purchase these nutritious foods.
While Labour argues that removing GST would have a greater impact on low-income families as they allocate a larger proportion of their budget to purchasing fruits and vegetables, Te Morenga asserts that the potential benefits of this measure must be considered in the context of extreme disadvantage experienced by these families, in comparison to those with higher incomes.
HCA urges all political parties to prioritize evidence-based solutions, such as the Ka Ora, Ka Ako – Healthy School Lunches program, which aims to alleviate the high costs of healthy food and improve children’s nutrition. Currently, the program is delivered in the lowest socioeconomic schools, constituting 25% of all schools, at an annual cost of $320 million. The HCA advocates for expanding the program to at least 50% of schools to reach a wider population.
Additionally, in the quest for fairer prices for healthy foods, the HCA emphasizes the importance of the government’s efforts to break the duopoly held by supermarkets. Increasing competition in the market would contribute to achieving more equitable pricing for nutritious food.
In conclusion, though removing GST from fresh and frozen fruit and vegetables is often touted as a potential solution to alleviate the high costs faced by Māori and low-income communities, the Health Coalition Aotearoa argues that this measure would have limited impact. Instead, they urge political parties to invest in evidence-based solutions, such as the Healthy School Lunches program, and take steps to foster fairer pricing for healthy food through promoting competition in the supermarket sector. By addressing these systemic issues, the government can work towards creating a more equitable environment where all New Zealanders have access to affordable, nutritious produce.
